The new Real Estate Partners asset is in the Irvine Business Complex at 14402 Franklin Ave., near Walnut Avenue, and was built in 1970. It was empty at the time of the sale, but Real Estate Partners has hired John Collins of Voit Commercial Brokerage in Irvine to lease the building and already has a lease out for signature with a 20,000-sf tenant.
The new owner also is in negotiations with a real estate services company to take the remainder of the building. The $3.6-million renovation project will include exterior upgrades and interior tenant improvements to convert what was a single-tenant R&D building into a multi-tenant office building on a 4.5-acre site.
The Tustin acquisition will allow REP to capitalize on the positive trends in the Orange County office market, according to Thompson, who points out that the vacancy rate for office space in the county is among the lowest in the country for suburban office markets. Recent market reports show that the county has set records this year with a vacancy rate that is the lowest in years and average asking rates that have climbed to record highs.
Real Estate Partners represented itself in the acquisition on behalf of REPFund Franklin LLC. Andy Friedman of Industrial Properties in Tustin represented the seller, a private investor based in Orange County. Equity and financing were arranged by Dan Blanck and Jason Krupoff of GMAC Commercial Mortgage in Irvine.
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